Gold and silver hit record high on bullion market

Both precious metals, gold and silver rose on the bullion market in Mumbai today with gold crossing the Rs20,700-level and silver breaking Rs44,000-mark on hectic buying from stockists triggered by a sharp rise in the global market. Support to the dizzying rise also came from the ongoing marriage season that lifted market sentiment.

In New York, investors turned their attention to these metals in the backdrop of the debt crisis spreading in Europe coupled with the news that Chinese authorities had approved a fund to invest in gold overseas.

Gold for February delivery vaulted by $18.6 to 1,386.10 an ounce on the Comex division of the New York Mercantile Exchange, while silver for March delivery was up 3.8 per cent to $ 28.21 an ounce.

Silver gained 15 per cent in November while standard gold (99.5 purity) was up Rs175 per 10 grams  from Rs20,540 at previous close to Rs20, 715.

Pure gold (99.9 purity) also shot up by Rs180 per 10 grams, opening at Rs20, 815 from the last close of Rs20,635.

Silver ready (.999 fineness) too shot Rs 1,390 per kilo opening at Rs 44,075 from its previous close of Rs 42,685.